Inheriting real estate in Stuttgart: How to avoid disputes and high taxes!

Inheriting real estate in Stuttgart: How to avoid disputes and high taxes!

The decision to pass on a property to one's own children is of great importance for many owners in Stuttgart. Real estate prices in the region have shown signs of stagnating or even rising in recent years. But without careful planning, such an inheritance can quickly become a financial burden. This is particularly true if the property value exceeds the allowances that are taken into account for inheritance tax.

Inheritance tax is an important factor that owners should keep an eye on. For children, the allowance is 400,000 euros per parent. If the value of the inherited property exceeds this amount, a tax will be charged on the excess value, which can range from 7% to 30%. An example from Stuttgart makes this clear: If a child inherits a property worth 650,000 euros, inheritance tax must be paid on 250,000 euros.

Strategic planning to avoid inheritance disputes

Heirs are often forced to sell or mortgage real estate in order to meet tax obligations. For this reason, it is recommended that gifts be made during your lifetime. This strategy makes it possible to use the allowances every ten years. A so-called chain gift can offer additional advantages by allowing multiple allowances to be claimed via spouses.

Another important point is clearly regulated and documented ownership relationships. This also means that clear instructions are anchored in the will or inheritance contract. Early estate planning can not only avoid family conflicts, but also make optimal use of tax leeway.

Special regulations for tax exemption

Special regulations apply to spouses, registered life partners and children when it comes to inheriting real estate. They can inherit tax-free as long as they live in the family home. However, in order to benefit from this tax exemption, the surviving relatives must live in the house for at least ten years (Section 13 Paragraph 1 No. 4b ErbStG). However, if you use it as a second residence, this tax exemption does not apply.

The period for using the property usually begins six months after the parent's death. However, if the heir moves in too late, this can lead to the rejection of tax exemption, as a case before the Münster Finance Court shows. In a legal dispute, this decided that the value of the property essentially plays no role in tax exemption as long as the living space regulations are observed.

Studies and experts advise owners in Stuttgart to take action early on and think intensively about the transfer of assets. A forward-looking regulation can not only relieve the burden on the heir, but also prevent uncertainties and conflicts within the family.

It is important for property owners in the region to be fully aware of the inheritance tax regulations and, if necessary, to take early action. Further information can be found at LifePR and Financial tip.